Dáil Éireann Debate, Tuesday - 21 November 2023
207. Deputy Ivana Bacik asked the Minister for Enterprise, Trade and Employment if he has met with so-called fast fashion retailers in operation in Ireland; and, if so, if he will detail his representations in respect of the environmental and workers' rights practices of same. [50777/23]
View answerI understand the Deputy is referring to multinational retailers which have headquarters in Ireland.
IDA Ireland actively markets Ireland as an attractive investment location for Multi-National Companies (MNCs). In this regard, IDA Ireland’s 2021-24 strategy includes a focus on sustainable growth in all its forms, including the promotion of responsible and environmentally sustainable business practices among the Agency’s client base. I would also emphasise that all IDA client companies, like all other enterprises, must comply with all relevant national and EU laws and regulations.
Recently in May 2023, SHEIN which is a client of IDA Ireland, officially launched its Europe, Middle East and Africa (EMEA) headquarters based in Dublin City Centre. At that event I met with SHEIN’s Global Head of Government Relations and other company leaders to discuss SHEIN’s strategy in Ireland. This included discussing the growth of SHEIN’s workforce in Dublin to fill roles in big data and analytics, security engineering, finance management and legal, as well as expanding SHEIN's graduate programme in Ireland. SHEIN aims to fill 30 key roles in the Ireland office by end 2023, with a view to increasing that number as the company grows.
Sustainability considerations, including a company’s corporate level approach to the environment, form part of IDA’s due diligence process in assessing investment projects for approval. While engaging with SHEIN, IDA Ireland sought and received assurances in relation to the company’s commitment to environmental sustainability transformation in the fashion industry. SHEIN publicly states that it uses a unique mobile-first, on-demand production model enabling the company to identify trends and anticipate consumer demands. They utilise a model which produces an ultra-small batch (100-200) of each style pieces, gauge market response in real-time, and respond with larger-scale production to meet demand if warranted. This results in significantly less waste and excess inventory. The average unsold inventory level of the industry is, I understand, between 25%–40%, whereas SHEIN states that it has reduced this to a single digit.
In April this year, SHEIN announced its US$70m investment for the empowerment of the supply chain. Through the investments, the company states it aims to bolster efforts to continuously transform traditional production models with technology advancements, provide upskilling initiatives for workers, facilities enhancements, as well as services for the communities within the supplier ecosystem. The company has also signed international pledges and committed funding to improve worker conditions in their partner companies and is a signatory to the United Nations Global Compact Agreement (UNGC) and supports the ten principles focused on human rights, labour, environment, and anti-corruption.
